economy
February 2, 2026
The AI trend can give dividend aristocrats a boost, Raymond James says
After years of underperformance, the tide could be starting to shift for dividend stocks, according to Raymond James.
TL;DR
- Dividend Aristocrats have experienced their largest underperformance relative to the S&P 500 in decades, starting in May 2023.
- This underperformance was driven by the concentrated gains of AI-focused companies, particularly the 'Magnificent Seven'.
- The earnings gap between these tech giants and other sectors is beginning to narrow.
- The benefits of AI are expected to spread beyond big tech, impacting cost savings and productivity across various industries.
- Investors are looking to companies with a history of increasing dividends to capitalize on AI's broader economic benefits.
- Financial stocks, transports, and industrials are identified as potential areas of opportunity.
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